Counting Bullish and Bearish Candles to Gauge Trend Phase

Summary

This indicator counts bullish and bearish candles over a configurable number of bars and expresses the counts as percentages. It presents the relative balance between the two candle types as a way to gauge trend conditions: readings near an even split are described as signaling a trend’s beginning, while a stronger imbalance, with the blue line near 61.8% and the red line near 38.2%, is described as a completed trend.

The note offers a compact interpretation rule, but it does not specify the exact calculation details, how the lookback period should be selected, or how the indicator should be used to enter or exit positions. It also provides no chart examples, backtest, or evidence that the stated thresholds predict trend starts or endings. The indicator is best understood as a descriptive measure of recent candle direction; its thresholds would need independent testing across instruments and timeframes before being treated as signals.

Key ideas

• The indicator measures the proportions of bullish and bearish candles within a selected lookback window.
• A near-even split between the two candle types is presented as an early-trend condition.
• A larger separation, around the stated 61.8% and 38.2% levels, is described as trend completion.
• The note provides no validation or detailed rules for trading from these readings.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.